Effect of Customer Orientation on Performance of Pharmaceutical Manufacturing Firms in Kenya
DOI:
https://doi.org/10.53819/81018102t5419Abstract
Organizational performance is key to the sustainability of a firm. Pharmaceutical firms have been experiencing performance issues in the recent past. Manufacturing and health care service are two of Kenya’s most important sectors guiding its development towards achieving vision 2030. However, variations brought about by globalization, such as environmental change, are threatening the survival of these industries globally. Thus, the study sought to examine the effect of customer orientation on performance of pharmaceutical manufacturing firms in Kenya. The study was informed by dynamic capability theory. The study employed an explanatory research design and focused on employees in top and middle-level management positions in 43 pharmaceutical manufacturing firms in Kenya. The sample size of 246 was determined using the Yamane formula and obtained through random sampling from each firm. Questionnaires were utilized as the research instruments, and a pilot study was conducted to ensure the validity and reliability of the instruments. The analysis of the data involved the use of descriptive and inferential statistics. The correlation results showed that customer orientation and performance are positively and significantly associated (β=0.629, p=0.000). The model fitness results showed that customer orientation explains 39.6% of the variations in the performance. The regression of coefficients results reported that customer orientation and performance is found to be positively and significantly related (β=0.569, p=0.000). The study concludes that customer orientation includes the firm continually monitoring its commitment levels and positioning in serving the needs of its consumers. Customer orientation can be influenced by ensuring the business goals are driven largely by consumer satisfaction. The study recommends that every organization should pay attention to customer orientation since it was found to have a positive and significant effect on performance. The firms should continually monitor its commitment levels and positioning in serving the needs of its consumers. The firm should pay closer attention to after-sales services. Information should be disclosed regarding quality of the products and services. Customer complaints need to be addressed immediately whenever raised. The embracing and strengthening customer orientation can drive positive outcomes for pharmaceutical manufacturing firms, leading to enhanced performance and competitive advantage in the market.
Keywords: Customer orientation, performance, pharmaceutical manufacturing firms, Kenya
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